Some may wonder about what an estate plan is and how they may come up with one. How can you help ensure your family is taken care of in the future? If you want to create a solid estate plan, you should take the following steps.
Create a Will
Drafting a will is the cornerstone of any good estate plan. Without a will, your assets will be divided by probate courts after your death. These divisions are set based on your familial relationships, and do not take into account the individual situations of your potential heirs.
In a will, you can name beneficiaries you entrust with inheriting and taking care of your property. Similarly, you can name a guardian who will care for your young children. You can also name a trusted adult to manage any property or money that your minor children stand to inherit
Draft a Trust
You can protect your property and the property of your children with a well-drafted trust. Assets in a living trust generally avoid the probate process, passing directly to named beneficiaries upon your death.
Trusts also give you more control over how you want your assets to be distributed. You can create a trust to fund a charity of your choice, pay out set amounts over time for beneficiaries with poor money management skills, or support a special needs loved one without disqualifying them for benefits.
Establish Powers of Attorney
A healthcare power of attorney allows you to protect your wishes you may not be in a position of making medical decisions on your own. Health care directives, should include a power of the attorney and a declaration of your health care. These documents may get combined into one health cover directive.